More than 180 countries across the world, including India, are trapped in the trap of low per capita income.
According to the World Bank report, India’s per capita income is not going to grow rapidly even in the coming decades.
The report says that it will take 75 years for India to reach a quarter of America’s per capita income. China will reach this position in just 10 years. It will take 70 years for Indonesia to increase its per capita income to this level.
An analysis of the last 50 years of economic growth revealed that when a country reaches 10 percent of the US GDP per capita, it falls into a trap.
At present, it is equal to 8 thousand US dollars. The World Bank has prepared a list of middle income countries. By the end of 2023, 108 such countries were identified which fall in the category of middle income.
Their GDP per capita is between 1136 and 13845 dollars. They represent 75 percent of the world’s population. 6 billion people live in these countries. At the same time, two out of three people are living in extreme poverty.
These countries may face even bigger challenges in the future. In fact, the debt on these countries is increasing and a large population is continuously getting older.
These countries have trade and geopolitical problems. Apart from this, environment is also a big challenge. Due to climate change, economic development has to be done while taking care of the environment.
The World Bank says that if proper strategy is not made then per capita income of these countries is not going to increase much even in the next 30 years.
If we talk about the year 2024, then India’s per capita income is about 2700 dollars. At the same time, the purchasing power capacity per person is about 10120 dollars.
India’s GDP is 3.9 trillion dollars. India is rapidly moving towards becoming the fourth largest economy in the world.
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